Time Warner has signed a letter of intent with Juno to let the Internet access provider and free e-mail company have access to Time Warner Cable's networks. Time Warner Cable has over 12.6 million customers across the U.S., and over 11.5 million homes have access to its high-speed Internet access service, currently exclusively licensed to AT&T's Road Runner Service. Juno will be the first company to participate in Time Warner's “open” cable lines once Time Warner renegotiates its deal with AT&T.

The deal will let Juno market its own high-speed 'Net access service, Juno Express, to Time Warner cable customers. The service includes access, applications, content, and video streaming. Both companies will market the service and will be allowed to offer separate service bundles and pricing. Only Time Warner will handle the installation tasks for customers who do sign up, however. The deal will be tested in a “multi-ISP trial” in Columbus, Ohio, once Time Warner reaches new terms with AT&T.

This move is a direct result of the criticism Time Warner has been receiving from industry rivals, consumer groups, and the Federal Trade Commission, all of whom fear that the proposed buyout of Time Warner by America Online will create an industry behemoth intent on monopoly. Time Warner and AOL have claimed from the beginning of their buyout talks that they are committed to preserving competition, and this is the first actual proof of that intent. Time Warner's CEO Gerald Levin has also asked all competitors interested in working with Time Warner Cable to speak with his company.

SAM'S OPINION
Well, I guess I have to give credit where it's due, despite my major misgivings and apprehensions about the AOL/Time Warner merger. I don't think this Juno deal in particular is that big a thing (since Juno's numbers don't come close to AOL's or Time Warner's), but I certainly am impressed with how quickly Time Warner signed a deal with a competitor. I guess this is one good thing to come out of having the FTC monitoring a proposed merger; if the FTC chairman hadn't made it clear to Steve Case and Gerald Levin that competition crushing would scuttle his agency's approval of their merger, I'm sure this deal wouldn't have happened anytime soon. We'll probably see a whole lot more similar agreements being signed in the near future, which does make me feel a little better about my “closed cable system” concerns.

It is worth watching further, however, since I'll be interested to see how Time Warner will get out of its exclusivity agreement with AT&T regarding the Road Runner broadband service. Want to bet Time Warner will be forking over a very hefty sum of cash to suddenly create open access to Time Warner Cable's network? As for Juno, the company is kicking some major butt. Over the past couple of weeks it absorbed the free ISP traffic from failed companies Freewwweb and Worldspy, and now it'll be first up to bat to offer Time Warner households an ISP alternative. I've been using Juno as a decoy address for spammers for years ('cause it's free and runs pretty well) and I've never tried its 'Net access programs (there's a mix of free and paid services), but I'm sure Juno Express broadband service will appeal to some of Time Warner's customers. I'd love to see more about the details behind both Juno and Time Warner bundling and pricing the service independently, but I guess we'll have to wait for the actual deal to be signed.

Because I, like most Geeks, frequently do get paranoid, I will freely state that if more of this “open,” competition-friendly behavior continues from Time Warner and AOL, I may have to tone down my anti-AOL/Time Warner rantings a bit, despite my continued hate of the dumbing down of the 'Net that AOL has been perpetrating for so many years. And I will also have to admit that this is one instance where a government agency's involvement actually produced a good result–can you hear my teeth gnashing? Who says we Geeks aren't capable of change? :)

USER COMMENTS 2 comment(s)

Dear Satan,(2:18pm EST Mon Jul 31 2000)You shipment of Arctic Fleece parkas has been delayed. I know that, with the current sub-zero conditions in Hell, this will be inconvenient; however, I am sure you will understand that your current meteorological phenomenae are completely unprecedented and could never have been predicted when you placed the original order, with an “open” delivery date.

Sincerly,

- by Icesnake Frostfyre

What?(3:59pm EST Mon Jul 31 2000)Can't you see this is just a ploy to appease the FTC and others? Sure Juno, you and your 5 members can use our service, along with 20+ million AOL users. This alliance is just pure evil. It must never go through. - by James